Leading athletic footwear, apparel, equipment, and accessories company Nike announced the launch of its Purpose 2025 Targets, a broad range of sustainability goals encompassing the company’s environmental, social and governance commitments. As part of its new initiative, the company will for the first time link executive compensation to its performance on ESG goals.

Nike revealed the new goals with the release of its FY20 Impact Report, highlighting the company’s progress on meeting its existing goals and the conclusion of its prior 5-year sustainability program. While the company reported significant progress on some goals, including increasing use of renewable energy, reducing waste to landfill and use of sustainable materials, some targets were not met, such as goals to reduce average product carbon footprint and lower per unit energy consumption.

In his introduction to the Impact Report, Nike President & CEO John Donahoe said:

“We’re proud of the successes we’ve seen, but we know the work is still just beginning. We will continue to strive to lower emissions across our key operations, to shrink our product carbon footprint, to accelerate diversity and inclusion across our teams, to enable kids to have access to play and sport. We will always challenge ourselves to do better. Always.”

For its 2025 initiative, Nike set a broad set of targets encompassing diversity and inclusion, pay equity, labor practices, health and safety throughout the supply chain, community investment, as well as climate and environmental commitments, among others. Some of the key goals include reaching 50% representation of women in the company’s global corporate workforce and 45% in leadership positions, ensuring that 100% of facilities in our extended supply chain meet the company’s labor, health, safety, and environmental standards, and achieving a 70% absolute reduction of greenhouse gas (GHG) emissions in owned or operated facilities through 100% renewable electricity and fleet electrification.

Additionally, Nike said that it will tie executive compensation to performance on its 2025 targets, leverage annual milestones to improve performance management, extend accountability of targets deeper into the value chain, with new targets focused on waste, labor and supplier diversity, and align with Science Based Targets and Sustainable Development Goals (SDGs).

Donahoe said:

“Our Purpose 2025 Targets are not just aspirations. They are a call to action – with clear goals, strategies and accountabilities. We are also redefining what responsible leadership looks like. For the first time, we will tie executive compensation to Nike’s progress in deepening diversity and inclusion, protecting the planet, and advancing ethical manufacturing.”